Books-A-Million, Inc. Announces Third Quarter Results

Books-A-Million, Inc. Announces Third Quarter Results
Business Wire
BIRMINGHAM, Ala. -- November 26, 2013
Books-A-Million, Inc. (NASDAQ:BAMM) today announced financial results for the
13-week and 39-week periods ended November 2, 2013. Revenues for the 13-week
period ended November 2, 2013 decreased 3.5% to $100.4 million, compared with
revenues of $104.0 million in the year-earlier period. Comparable store sales
for the third quarter declined 8.5%, compared with the 13-week period in the
prior year. Net loss from continuing operations for the third quarter was $7.1
million, or $0.47 per diluted share, compared with net loss from continuing
operations of $2.7 million, or $0.18 per diluted share, in the year-earlier
period.
For the 39-week period ended November 2, 2013, revenues decreased 6.6% to
$313.6 million from net revenues of $335.8 million in the year-earlier period.
Comparable store sales declined 9.2%, compared with the same period in the
prior year. For the 39-week period ended November 2, 2013, the Company
reported a net loss from continuing operations of $19.7 million, or $1.33 per
diluted share, compared with net loss from continuing operations of $5.4
million, or $0.36 per diluted share, in the year-earlier period.
Commenting on the results, Terrance G. Finley, Chief Executive Officer and
President, said, “Our third quarter results are an improvement over the very
difficult comparisons in the first half of the year. Comparable store sales
improved throughout the quarter, and we are encouraged by the book and
merchandise lineup as we prepare for the holiday season.”
ABOUT BOOKS-A-MILLION, INC.
Books-A-Million, Inc. is one of the nation’s leading book retailers and sells
on the Internet at www.booksamillion.com. The Company presently operates 258
stores in 33 states and the District of Columbia. The Company operates large
superstores under the names Books-A-Million (BAM!), Books & Co. and 2nd &
Charles and traditional bookstores operating under the names Bookland and
Books-A-Million. Also included in the Company’s retail operations is the
operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of
self-serve frozen yogurt stores with 41 locations. The Company also develops
and manages commercial real estate investments through its subsidiary,
Preferred Growth Properties. The common stock of Books-A-Million, Inc. is
traded on the NASDAQ Global Select Market under the symbol BAMM. For more
information, visit the Company’s corporate website at
www.booksamillioninc.com.
Follow Books-A-Million on Twitter (http://twitter.com/booksamillion) and like
us on Facebook (http://facebook.com/booksamillion).
BOOKS-A-MILLION, INC.
Unaudited Consolidated Financial Highlights
(In thousands, except per share data)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
November October November October
2, 27, 2, 27,
2013 2012 2013 2012
(a) (a)
Revenue
Net sales $ 99,888 $ 103,904 $ 312,299 $ 335,563
Other revenue 478 79 1,275 218
Total revenues 100,366 103,983 313,574 335,781
Cost of
products sold,
including
warehouse 74,119 76,511 227,709 244,189
distribution
and store
occupancy costs
Gross profit 26,247 27,472 85,865 91,592
Operating,
selling and 28,686 27,697 87,294 86,789
administrative
expenses
Depreciation
and 4,765 4,114 13,492 12,352
amortization
Operating loss
from continuing (7,204 ) (4,339 ) (14,921 ) (7,549 )
operations
Interest 620 440 1,512 1,330
expense, net
Loss from
continuing
operations, (7,824 ) (4,779 ) (16,433 ) (8,879 )
before income
taxes
Income tax
expense (596 ) (2,256 ) 3,422 (3,684 )
(benefit)
Net loss from
continuing
operations (7,228 ) (2,523 ) (19,855 ) (5,195 )
before equity
method
investment
Net income
(loss) on 113 (171 ) 112 (252 )
equity method
investment
Net loss from
continuing (7,115 ) (2,694 ) (19,743 ) (5,447 )
operations
Loss from
discontinued (22 ) (81 ) (229 ) (151 )
operations
Net loss $ (7,137 ) $ (2,775 ) $ (19,972 ) $ (5,598 )
Less net loss
attributable to (197 ) -- (218 ) --
noncontrolling
interest
Net loss
attributable to $ (6,940 ) $ (2,775 ) $ (19,754 ) $ (5,598 )
Books-A-Million
Net loss per
share:
Basic and
Diluted
Net loss from
continuing
operations $ (0.47 ) $ (0.18 ) $ (1.33 ) $ (0.36 )
attributable to
Books-A-Million
Net loss from
discontinued
operations (0.00 ) (0.00 ) (0.01 ) (0.01 )
attributable to
Books-A-Million
Net loss per
common share $ (0.47 ) $ (0.18 ) $ (1.34 ) $ (0.37 )
attributable to
Books-A-Million
Weighted
average number
of shares 14,657 15,286 14,725 15,331
outstanding –
basic and
diluted
The results for the 13-weeks and 39-weeks ended October 27, 2012, contain certain
(a) reclassifications for discontinued operations and other insignificant
reclassifications necessary to conform to the presentation of the 13-weeks and
39-weeks ended November 2, 2013.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995:
This document contains certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that involve a number
of risks and uncertainties. A number of factors could cause actual results,
performance, achievements of the Company or industry results to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. These factors include, but are not
limited to, the competitive environment in the book retail industry in general
and in the Company's specific market area; inflation; economic conditions in
general and in the Company's specific market areas; the number of store
openings and closings; the profitability of certain product lines, capital
expenditures and future liquidity; liability and other claims asserted against
the Company; uncertainties related to the Internet and the Company's Internet
initiative; and the impact of the availability of e-content and the e-reader
market. In addition, such forward-looking statements are necessarily dependent
upon assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors. Accordingly,
any forward-looking statements included herein do not purport to be
predictions of future events or circumstances and may not be realized. Given
these uncertainties, stockholders and prospective investors are cautioned not
to place undue reliance on such forward-looking statements. Please refer to
the Company’s annual, quarterly and periodic reports on file with the SEC for
a more detailed discussion of these and other risks that could cause results
to differ materially. The Company disclaims any obligations to update any such
factors or to publicly announce the results of any revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.
Contact:
Books-A-Million, Inc.
R. Todd Noden, 205-909-4808
Chief Financial Officer